The Members,
 
 The Directors present this 38th Annual Report on the business and
 operations of the Company together with Audited Balance Sheet and
 Profit & Loss Account for the Financial Year ended 31st March, 2011 and
 the report of the Auditors thereon.
 
 The performance of the Company in 2010-11 has been as follows:
 
 FINANCIAL RESULTS :
 
                                                          (Rs in Lakhs)
 
 Particulars                              2010-11           2009-10
 
 Sales (excluding Excise Duty)           1,44,669          1,33,991
 
 and Other Income
 
 Profit before Interest, Depreciation      27,984            29,019
 
 and Taxation (PBIDT)
 
 Less: Interest                             1,989             1,748
 
 Profit before Depreciation and            25,995            27,271
 
 Taxation (PBDT)
 
 Less: Depreciation                        13,297            12,155
 
 Profit of the year                        12,698            15,116
 
 Prior Period Adjustment                     (13)               488
 
 [Net Debit/(Credit)]
 
 Profit before Taxation (PBT)              12,711            14,628
 
 Less: Provision for Taxation               1,281           (2,556)
 
 (Including Deferred Tax Liability, 
 Wealth Tax, Fringe Benefits Tax,
 etc.)
 
 Profit after Taxation (PAT)               11,430            17,184
 
 Add: P&L A/c Balance brought 
 forward                                   35,124            29,102 
 from Previous Year
 
 Amount available for appropriations       46,554            46,286
 
 Your Directors recommend the 
 following Appropriations:
 
 Proposed Dividend                          2,203             2,203
 
 Tax on Proposed Dividend                     357               366
 
 Transferred to General Reserve             5,715             8,593
 
 Balance Carried to Balance Sheet          38,279            35,124
 
 Earning per Share                            Rs15               Rs23
 
 Dividend per Share                         Rs3.00             Rs3.00
 
 Book Value per Share                        Rs197              Rs185
 
 
 
 DIVIDEND:
 
 Your Directors are glad to recommend a Dividend @ Rs3.00 per share for
 the year ended 31st March, 2011 on 7,34,36,928 Equity Shares of Rs10/-
 each fully paid up.
 
 ENERGY CONSERVATION AND TECHNOLOGY ABSORPTION:
 
 Information in accordance with the provisions of Section 217 (1) (e) of
 the Companies Act, 1956 read with the Companies (Disclosure of
 Particulars in the report of the Board of Directors) Rules, 1988 is
 given in the Annexure - 1 to this report.
 
 INSURANCE:
 
 The Company has taken adequate insurance for all its properties. The
 Company has also taken necessary insurance cover as required under the
 Public Liability Insurance Act, 1991.
 
 PUBLIC DEPOSITS:
 
 During the year 2010-11, the Company has not accepted / renewed any
 Fixed Deposits. As at the date of this report only 1 (one) deposit of
 Rs10,000/- has remained unencashed / unclaimed.
 
 LISTING AGREEMENT COMPLIANCE:
 
 Your Company''s Equity Shares are listed on Bombay Stock Exchange Ltd.
 (BSE), National Stock Exchange of India Ltd.  (NSE) and Vadodara Stock
 Exchange Ltd (VSE) and their listing fees for the Financial Year
 2011-12 has been paid and the conditions of Listing Agreement have been
 complied with.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT:
 
 The Board of Directors of the Company confirms:
 
 i) that in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to any material departure;
 
 ii) that the selected accounting policies were applied consistently and
 the Directors made judgements and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company as at March 31, 2011 and of the profit of the Company for
 the year ended on that date;
 
 iii) that proper and sufficient care has been taken for the maintenance
 of adequate accounting records in accordance with the provisions of the
 Companies Act, 1956 for safeguarding the assets of the Company and for
 preventing and detecting fraud and other irregularities; and iv) that
 the annual accounts have been prepared on a going concern basis.
 
 CORPORATE GOVERNANCE:
 
 The Company has been following the principles and practices of good
 Corporate Governance and has ensured compliance of the requirements
 stipulated under Clause - 49 of the Listing Agreement with the Stock
 Exchanges.
 
 A detailed report on Corporate Governance along with Certificate dated
 30th June, 2011 issued by Practicing Company Secretaries in terms of
 Clause - 49 of the Listing Agreement is attached forming part of this
 Report.
 
 MANAGEMENT DISCUSSION AND ANALYSIS:
 
 A report on Management Discussion and Analysis forms part of this
 Report and it deals with the Operations and Business Performance,
 Expansion & Diversification, Research & Development, Marketing
 Strategy, Safety & Environment, Corporate Social Responsibility, Human
 Resources Development etc.
 
 DIRECTORS:
 
 Shri M S Dagur, IAS has been appointed as the Managing Director of the
 Company vice Dr. Guruprasad Mohapatra, IAS with effect from 19th July,
 2011. Shri M S Dagur, IAS is the Chief Executive Officer &
 Rehabilitation Commissioner, Sardar Sarover Punarvasavat Agency,
 Vadodara and Principal Secretary to Governrment (R&R), Narmda Water
 Resources, Water Supply & Kalpsar Department, Gandhinagar and holds
 additional charge as the Managing Director of the Company.
 
 The Board places on record its deep appreciation of valuable services
 and contribution in the growth of the Company given by Dr. Guruprasad
 Mohapatra, IAS during his tenure as the Managing Director of the
 Company.
 
 Shri J N Godbole and Padma Bhushan, Dr. Sukh Dev, Directors will retire
 by rotation at the ensuing Annual General Meeting and being eligible
 offer themselves for reappointment and your Directors recommend the
 same for your approval.
 
 PARTICULARS OF EMPLOYEES:
 
 The information, as required under Section 217 (2A) of the Companies
 Act, 1956, read with Companies (Particulars of Employees) Rules 1975,
 as amended, forms part of this Report. Any Shareholder interested in
 seeking this information may write to Company Secretary of the Company
 at the Registered Office of the Company. Further, there was no employee
 holding 2% or more of the equity shares of the Company during the year
 2010-11.
 
 INTERNAL AUDITORS:
 
 M/s K.C. Mehta & Co., Chartered Accountants, Vadodara have been
 appointed as Internal Auditors for conducting Internal Audit of the
 Company for Vadodara and Dahej Complexes. The Internal Auditors
 independently evaluate the internal controls, adherence to and
 compliance with the procedures, guidelines and statutory requirements.
 The Audit Committee of Directors periodically reviews the reports of
 the internal auditors.
 
 STATUTORY AUDITORS:
 
 The Company''s Auditors M/s. Prakash Chandra Jain & Co., Chartered
 Accountants, Vadodara, retire and are eligible for reappointment. They
 have Furnished necessary concurrence and declaration and also informed
 that the Peer Review certificate issued by ICAI to them is valid for
 three years from the date of issue. You are requested to appoint
 Statutory Auditors and authorise your Directors to fix their
 remuneration.
 
 COST AUDITORS:
 
 The Government of India, Ministry of Finance has issued Cost Audit
 Order under Section 233(B) of the Companies Act, 1956 to appoint Cost
 Auditors to audit the Cost Accounting Records and Books of Accounts
 maintained by the Company in respect of Caustic Soda and
 Chloromethanes Products. Accordingly, the Board of Directors has
 appointed M/s. R K Patel & Co., Cost Accountants, Vadodara as Cost
 Auditor for Financial Year 2010-11 to conduct the Cost Audit of Caustic
 Soda products in both the plants at Vadodara and Dahej Complexes and
 for Chloromethanes products at Vadodara Complex of the Company.
 
 ACKNOWLEDGEMENTS:
 
 The Board expresses its gratitude and appreciation to the Government of
 India, Government of Gujarat, Financial Institutions, Insurance
 Companies, Banks, other business associates, Promoters, Shareholders
 and employees of the Company for their continued support.
 
                                     For and on behalf of the Board
 
                                                           A K JOTI
 
                                                           CHAIRMAN 
 
 Place : Gandhinagar 
 
 Date : 28th July, 2011